14:58 22 February 2025
Hedge Fund Replaces Analysts with AI and Outperforms the Market
Australian hedge fund Minotaur Capital, based in Sydney, has replaced traditional analysts with artificial intelligence (AI) to analyze markets and companies. This shift has significantly reduced operational costs while delivering impressive investment returns.
In its first six months, the Minotaur Global Opportunities Fund achieved a 13.7 percent return, twice the performance of its benchmark, the MSCI All Country World Index. The fund’s portfolio includes stocks from various countries and sectors, with a notable share of Polish companies, particularly CD Projekt, one of its largest holdings. Polish equities make up over 5 percent of the fund's portfolio.
Minotaur Capital utilizes custom AI-driven software powered by 20 language models (LLMs) from 10 providers, enabling effective company and industry analysis without traditional analysts. The fund’s innovative approach demonstrates how AI can enhance financial decision-making and market performance.
